The International Monetary Fund, the darling lending institution of neoliberal capitalists, believes that the U.S.’s current mortgage crisis is dragging down the world economy. The IMF is predicting at least a two-year global economic downturn, led by the U.S. credit crunch, that also has a gambling chance of turning into a “global recession.”


BBC:

In its latest economic forecast, the IMF says that world economic growth will slow to 3.7% in 2008 and 2009, 1.25% lower than growth in 2007.

The downturn will be led by the US, which the IMF believes will go into a “mild recession” this year.

The IMF admits that the global downturn might be still more severe than it is currently predicting, and says that there is a one in four chance of a “global recession” when world growth falls below 3%.

“The financial market crisis that erupted in August 2007 has developed into the largest financial shock since the Great Depression,” the report says.

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